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Iran’s forex center will certainly reduce dollar price: Central bank governor

Business Materials 29 September 2012 17:28 (UTC +04:00)

Azerbaijan, Baku, Sep.29/ Trend F.Milad/

The rising trend of dollar against rial will certainly stop as the foreign exchange transaction center gains ground, Iranian Central Bank Governor Mahmoud Bahmani stated.

The center is working with a robust backbone of foreign currencies, the Fars news agency reported Bahmani as saying.

Iran's foreign exchange transaction center was officially established on Monday.

The center allows importers of goods to buy dollars at a rate 2 percent cheaper than the street rate at any given time.

The government maintains an official reference rate of 12,260 rials to the dollar, but only a limited amount of foreign exchange is available at this rate.

The government plans to use revenues from petrochemical sales and 14.5 percent of its oil revenues to provide dollars for the center, Bahmani said.

"With the distribution of currency in this center, the exchange rate in the market will go down, because some of the demand (for dollar) will be met in this center and the pressure of demand will be eliminated," Bahmani was quoted as saying.

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